Latest news with #RocketONE
CNBC
31-07-2025
- Business
- CNBC
Online mortgages: Lenders, pros and cons
Homebuyers are increasingly choosing online mortgage lenders: Between 2013 and 2023, online lenders and other non-bank institutions more than doubled their share of the mortgage market, from 24% to 55%, surpassing traditional banks. E-lenders often have lower rates, faster closing times and a broader range of mortgage products than traditional banks. Online giant Rocket Mortgage is the largest direct home loan provider in the U.S., and consistently ranks near the top of J.D. Power's surveys on customer satisfaction with the mortgage process. That doesn't mean there aren't hiccups, though. Online lenders Ally Bank and Discover both wound down their home loan businesses in 2025. Is an online mortgage right for you? The answer isn't always cut and dry. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.10–30 years620Conventional, FHA, VA, jumbo, HomeReady and Home Possible, Rocket ONE+ mortgage, refinancing, home equity loans6200% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years. While most banks have robust digital offerings, an online lender has no physical locations and doesn't offer a full range of financial products, according to FICO, like checking and savings accounts. An online mortgage lender specializes in mortgage and home equity products. Other online lenders might focus on student loans or debt consolidation. There's really no "right" answer between a bank and an online mortgage lender. The choice depends on your needs. Because they face fewer regulatory restrictions and are zeroed in on home loans, online lenders typically offer a broader range of mortgage products. That includes non-qualified mortgages like bank statement, interest-only and profit-and-loss loans. They're also more willing to take a risk on unconventional borrowers, like self-employed workers, foreign nationals, real estate investors and people who've experienced a bankruptcy or foreclosure. Home equity products are relationship-heavy (and need deposits to fund them), so traditional banks are generally better for HELOCs and home equity loans. Online lenders work to ensure their application processes are intuitive and that users can file online or over the phone. They're also more likely to let visitors check rates with a soft credit inquiry, which won't hurt their credit score. Because they don't need a full banking license, online lenders tend to have more flexible credit requirements. That can be a big plus if you have a non-traditional income stream or filed for bankruptcy. If you're in a hurry, online lenders tend to close faster than brick-and-mortar banks. Twenty percent faster, according to the Federal Mortgage has an average closing time of 22 days, nearly half the industry standard. And hybrid lender Rate has a "Same Day Mortgage" program that allows qualified borrowers can get approval within one business day and close in as few as 10 days. Apply online for personalized rates; fixed-rate and adjustable-rate mortgages are available. Conventional loans, FHA loans, VA loans, Jumbo loans, low-down-payment mortgages 10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years. 620 for conventional loans 0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards. Read our review of Rocket Mortgage Apply online for rates. Conventional, FHA loan, VA loan, jumbo loan, physician loan, refinancing, HELOC, reverse mortgage 15-year and 30-year terms for fixed-rate mortgages; adjustable-rate mortgages have 5-year, 7-year or 10-year introductory periods 620 for conventional, 580 for FHA loans 3.5% with FHA loan Because they don't need overhead to maintain physical branches, online lenders have a reputation for lower rates. Depending on your credit score, though, that's not always the case. It's more common to see online lenders like SoFi and Better waive origination fees for existing customers or as a promotion. But many brick-and-mortar credit unions have fee waivers or discounts for existing customers and others, as well. Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included VA loan, FHA loan, conventional loan, fixed-rate loan, adjustable-rate loan, jumbo loan, HELOCS & Closed End Second Mortgages 10 – 30 years 600 3% Terms apply. Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included Conventional loan, FHA loan, Jumbo loan and adjustable-rate mortgage (ARM) 10–30 years 620 3.5% if moving forward with an FHA loan Terms apply. Regardless, always comparison shop with several digital and traditional lenders to find the best deal. Your mortgage is a huge financial undertaking, likely the biggest in your life. Only a traditional bank or credit union can walk you through the process face-to-face. And brick-and-mortar lenders have put a lot of resources into personalized service, whether that's a relationship discount or a coffee house in their two online lenders, Rocket Mortgage and AmeriSave, scored above average on J.D. Power's 2024 mortgage origination survey. That doesn't mean you can't get good customer care with a digital lender. Many have online chat features and agents available by phone evenings and weekends, when most banks are closed. But if you want a familiar face and all your affairs handled in one place, a bank or credit union comes out on top. Not all online mortgage lenders are created equal. Here are things to look for when considering an online mortgage. Reputation: Look at the lender's Better Business Bureau grade and see how it lands on J.D. Power's customer satisfaction surveys for mortgage origination and servicing. You may want to see how long it's been in business and what percentage of the mortgage market it has. Loan types: You can get a conventional mortgage from any lender, but if you want an FHA loan or a non-qualifying mortgage, you'll have to narrow your search. The same is true of bridge loans, construction loans and home equity loans. Rates and fees: While online lenders have a reputation for lower rates, it depends on the applicant. Look for one that posts its rates online and waives or discounts lender fees. If you prefer going through the homebuying process quickly and in the comfort of your living room, an online lender will usually offer more convenience and options than a brick-and-mortar institution. Sometimes (but not always) with lower rates, as well. But if you're more comfortable with physical branches and decades (if not centuries) of experience, a traditional bank, like Chase or Bank of America, is the better option. Most offer excellent online service, too, so you'll enjoy the best of both worlds. Online lenders will have more mortgage choices, but a traditional lender has a broader array of financial products, letting you keep your credit card, checking and savings accounts and investments all in one place. Online mortgage lenders are as reputable as other types of licensed lenders. However, if you prefer an in-person experience, you may want to work with a local lender that operates a physical branch. Always do your due diligence on any lender you choose to work with. Online borrowers have lower overhead costs, which might translate into lower rates, but this's not always the case. Apply with multiple lenders, both online and physical, to determine who has the best rate for you. Because they don't offer all the financial services of traditional banks, online lenders don't have to adhere to as many federal regulations as banks. So they can have more flexible credit requirements for approval. However, you might be quoted a higher interest rate or less favorable terms. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
CNBC
30-07-2025
- Business
- CNBC
When will mortgage rates drop below 6%?
Mortgage rates need to get below 6% to reinvigorate the frosty housing market, according to the National Association of Realtors (NAR). A 30-year fixed-rate mortgage at 6% would make the median-priced home affordable for about 5.5 million more households, NAR economists shared at the July 16 Real Estate Forecast Summit. "If rates were to hit that magic number, it's likely that about 10%, or 550,000, of those additional households would buy a home over the next 12 or 18 months," the organization said in a release. But NAR's experts don't see rates hitting that threshold until next year. And Fannie Mae has predicted they'll stay at 6% or higher at least until 2027. While home shoppers may be hoping interest rate cuts later this fall will do the trick, national housing expert Jonathan Miller doesn't think it would move the needle. "Even with various Wall Street firms forecasting one to three rate cuts in the back half of 2025, it seems unlikely that cuts will be able to drive mortgage rates lower, Miller, founder and CEO of appraisal firm Miller Samuel, told CNBC Select. "There's just a lot of concern and uncertainty about the economy and the impact of tariffs." Banks are hesitant to cut mortgage rates in times of economic uncertainty, Miller said, when funding loans carries more risk for them. Just because rates will likely remain elevated doesn't mean you should wait two years to take out a mortgage, says NAR deputy chief economist Jessica Lautz. It may even be cheaper now, she added. "It's actually a really good moment for homebuyers when rates are flat," Lautz said, "as opposed to seeing a surge in demand when rates drop and having to compete, and maybe even bid up an offer, for that listed home." The current rate environment is an important consideration when mortgage shopping, Lautz said, but "there are so many factors that go into what someone is paying every month for their mortgage." Some are more under your control, including your credit score, debt-to-income ratio and the size of your down payment. If you're waiting for a rate drop, take the next six months to pay down debt and build your savings. You'll not only improve your credit score, but you'll have more to contribute upfront. Lautz added that, while rates have been historically high, they've also remained relatively flat, which can be very helpful. "They've been in the mid-6% range, 6.7% or 6.8%, since January, she said. "It allows a buyer to plan out the homebuying process, to look at homes with a realtor and to lock in a rate and feel okay about it. Not like they're going to miss out." Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.10–30 years620Conventional, FHA, VA, jumbo, HomeReady and Home Possible, Rocket ONE+ mortgage, refinancing, home equity loans6200% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years. Housing experts don't expect a significant decline this year, or possibly even next. Freddie Mac has forecasted that mortgage rates will hit 6.4% at the close of 2025 and 6.0% at the end of 2026 Rates have been flat since January 2025, hovering below 7%. NAR economist Jessica Lautz says rate stability makes for a great environment for homebuying. There are fewer shoppers on the market, home prices don't rise dramatically and buyers won't feel like. they're missing out by not holding off another month or two. While mortgage rates could go down in 2026, the ongoing housing shortage means average home prices won't show any signs of decreasing. Whether you'd pay more for a specific property in 2025 versus 2026 depends on a host of variables, not just the mortgage rate landscape. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of the tax system and products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
